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“There is not (or should not be ) an argument that subsidies going under various names of tax releif, sweetheart contracts, below market financing etc etc etc exist. It is a fact of life, so deal with it.” - Iron City
OK, lets “deal with it”, without discussing any of the subsidies issues.
Boeing is currently suffering the consequences that since the 777 it has failed to deliver any new civil aircraft design that has yet to make it off the drawing board. It chose to pursue the Sonic Cruiser project, which was to the detriment of other projects that it should have perhaps focused on. Customers are at the moment placing orders elseware.
Whilst I am sure the 7E7 will be a fine aircraft, it was Boeing’s choice not to field a new aircraft for this market segment earlier.
The 717 and 727 airframes date back to the 1960’s, the Airbus A32X family goes back to the 1980’s, but both will need to compete against Embraer’s new designs as more airlines turn to them, as jetBlue have recently done.
I can confidently predict a similar “it’s not fair” argument from Lockheed when the A400M starts to eat into Hercules export sales in a few years time, again as a consequence of new products entering the market.
I suspect that Airbus after a few years of having the larger market slice, will full into a similar trap of failing re-invest in new products, and then experience similar pain.
I am in agreement with Iron City, where it all starts to go wrong is when the tax payer entrusts money to the politicians.